Uber wins a victory in its effort to keep unhappy customers from suing in court

Uber Technologies Inc on Thursday won a victory in its effort to keep unhappy customers from suing in court, persuading a federal appeals court to send a Connecticut passenger's price-fixing case into arbitration.

Representational Image. Reuters

Overturning a lower court ruling, the 2nd US Circuit Court of Appeals in Manhattan said Uber and former Chief Executive Officer Travis Kalanick provided the necessary "reasonably conspicuous" notice in online user agreements that disputes should be arbitrated.

"The Second Circuit's powerful and commonsense opinion will serve to protect online contracting and strengthen commerce nationwide," Theodore Boutrous, a lawyer for Uber, said in a statement. "We are thrilled with the decision."

Lawyers for the passenger, Spencer Meyer, and Kalanick did not immediately respond to requests for comment.

Thursday's closely watched decision is a boost for internet companies hoping to enforce arbitration requirements, which are often buried in long lists of terms and conditions that customers may never see.

It also offers a lift to a besieged Uber, following a series of high-profile internal and legal problems.

Kalanick resigned as CEO in June after a shareholder revolt, and is the subject of a lawsuit by Uber investor Benchmark Capital to force him off the company's board.

Uber also faces allegations by female staff of sexual harassment and discrimination, a federal inquiry into software to help drivers avoid police, and a trade secrets lawsuit by Google parent Alphabet Inc's self-driving car unit Waymo.